First Home Owner savings in WA
If you are a first home buyer there are a number of incentives in Western Australia to make purchasing a new property easier and more affordable.
First Home Owners Grant (FHOG)
First home owners purchasing or building a new home may be eligible to receive a grant of $10,000. First home owners purchasing an established home may be eligible for a $3,000 grant. There are no income or assets tests to qualify for the FHOG. It is a genuine grant that you don’t have to repay; nor do you pay interest on it. The FHOG applies to residential dwellings only and does not apply to vacant land, business premises, holiday houses or minor renovations to an existing home.
REBA $2000 Home Buyers Assistance Account
The scheme provides a grant of up to $2,000 for the incidental expenses of first home buyers when they purchase an established or partially built home through a licensed real estate agent. The maximum purchase price criteria for the Home Buyers Assistance Account is $400,000.
The scheme is funded from interest paid on real estate agents’ trust accounts. The grant can be used for – mortgage registration fees, solicitor and/or conveyancing fees, valuation fees, inspection fees, establishment fees, mortgage insurance premiums and lending institution fees associated with lodging the application.
First Home Saver Account
The Federal Government’s First Home Saver Accounts provide a simple, tax effective way to save for a first home through a combination of Government contributions and low taxes.
The Government will contribute 17 per cent on the first $5,000 (indexed) of individual contributions made each year. This means an individual contributing $5,000 will receive a Government contribution of $850.
When you withdraw from the account you have to take all the money at once and close the account; you cannot make partial withdrawals. There are rules about when you are entitled to withdraw the funds. The funds you don’t use for a home must be paid into your superannuation (unless you’ve reached 60 years of age). You cannot ever open another first home saver account after you purchase a home or have the balance paid to superannuation.
Stamp Duty Concessions
In Western Australia, first home buyers receive a full exemption from the tax for any home purchase up to and including $500,000. The same exemption applies for vacant land purchases of up to $300,000. If the home purchase is between $500,001 and $600,000, a partial exemption is applied. For vacant land purchased for $300,001 and $400,000, a partial rebate is available.
We understand First Home Owner savings in WA and our team can use them to your advantage. If you are looking to buy your first home contact one of our professionals on (08) 9289 7777 or info@nullrdfinance.com.au and they will help you with all the savings and get the best mortgage for you!